Reduction of Loan Loss Provisions through Strengthened Soundness Management
IBK has operated a systematic credit soundness strategy to manage the credit loss ratio in the medium to long-term, and actively pursued the reduction of loan loss provisions through semi-annual inspections. Through this, it effectively manages credit risk and ensures financial stability.
The bank has strengthened preemptive soundness management by expanding credit rating audits and thematic audits, and refining credit risk assessments by introducing specialized indicators for vulnerable industries such as construction. With these efforts, IBK identifies SMEs showing signs of insolvency early and induces restructuring to enhance their financial soundness.
Introduction of Big Data-Based Default Prediction Model
IBK has enhanced the accuracy of credit evaluations and advanced the default prediction model by integrating financial and non-financial data. Through this, it has successfully addressed the limitations of traditional evaluation methods (focused on financial statements), resolving information asymmetry, and conducting more rapid and precise risk assessments.
BIS Ratio Management in Preparation for Strengthened Capital Regulations
IBK has thoroughly managed Risk-Weighted Assets (RWA) in preparation for the financial authorities' strengthened capital regulations and secured a stable capital buffer through additional capital procurement. It has ensured that there is no disruption in the execution of policy finance; the BIS ratio for 2024 was recorded at 14.75%, maintaining a level above the regulatory standard of 11.5%.
Improvement of Market Risk and Operational Risk Management Systems
IBK has applied the new standard methodology for the calculation market risk regulatory capital under Basel III to its internal capital calculation, resolving discrepancies in calculation methods and improving efficiency. Additionally, to enable rapid response during increased market volatility, it has established a daily market crisis management system to implement portfolio adjustments. Alongside regulatory compliance with financial authorities, IBK has enhanced the operational risk management system to effectively manage emerging risks.
BIS Ratio Management in Preparation for Strengthened Capital Regulations
IBK has thoroughly managed Risk-Weighted Assets (RWA) in preparation for the financial authorities' strengthened capital regulations and secured a stable capital buffer through additional capital procurement. It has ensured that there is no disruption in the execution of policy finance; the BIS ratio for 2024 was recorded at 14.75%, maintaining a level above the regulatory standard of 11.5%.
Improvement of Market Risk and Operational Risk Management Systems
IBK has applied the new standard methodology for the calculation market risk regulatory capital under Basel III to its internal capital calculation, resolving discrepancies in calculation methods and improving efficiency. Additionally, to enable rapid response during increased market volatility, it has established a daily market crisis management system to implement portfolio adjustments. Alongside regulatory compliance with financial authorities, IBK has enhanced the operational risk management system to effectively manage emerging risks.
Establishment of a Climate Risk Management System
IBK has established a climate risk management system to proactively recognize and respond to financial risks arising from climate change. In 2024, it developed a climate risk assessment model to calculate financial emissions per borrower and introduced a monitoring system to refine the management of high-carbon borrowers. Additionally, it enhanced the climate risk stress testing system to analyze the impact of climate change on the bank’s financial and non-financial elements. Based on these improvements, IBK has closely evaluated the impact of climate change on financial stability and further strengthened its risk management system. Moving forward, IBK plans to quantify climate risk in the same manner as traditional banking risks and incorporate it into the internal capital management system, while continuously developing financial support and risk management strategies to address climate change.
